PSBA-Manila

1) On December 31, 2022, the cash account of DioBrando Company shows the following :
Petty cash fund (including expense receipts for P2,000) 5,000
Savings account* 200,000
Traveler’s check 10,000
Manager’s check 23,000
Postage stamps 1,000
IOUs from the officers 3,000
Bank draft in a checking account with Allied Bank 70,000
Checking account in Doug Bank, per book (outstanding checks as of year end totaled P10,000) 90,000
Postal money order 20,000
Deposit segregated to pay dividends 100,000
Securities: Date Acquired Maturity date Amount
BSP T-Bills (1yr.) January 30, 2022 January 30, 2023 40,000
BSP T-Bills (6mos.) November 1, 2022 April 1, 2023 30,000
Money Market (9mos.) December 1, 2022 February 28, 2023 50,000
*Cash in Savings account includes P100,000 of compensating balances. It was noted that 40% of that amount
are legally restricted as to withdrawals. How much is the amount of Cash and Cash Equivalents to be presented
in the balance sheet?

Use the following information for the next two (2) questions:
On December 31, 2023, Jonathan Joestar Inc. had a cash account per ledger of P10,500,000 which included the
following:
Cash in bank – demand deposit 2,500,000
Equity investment – highly liquid and easily convertible into cash 500,000
NSF check of customer 200,000
Money market placement 3,500,000
Saving deposit 1,000,000
IOU from an employee 300,000
Pension fund 1,500,000
Customer check dated January 31, 2024 600,000
Customer check outstanding for 18 months 400,000
10,500,000

• Check of P150,000 in payment of accounts payable was dated and recorded on December 31, 2023 but mailed
to creditors on January 15, 2024.
• Check of P300,000 dated Jan. 31, 2024 in payment of account payable was recorded and mailed December 31, 2023.

• The cash receipts journal was held open until January 15, 2024, during which time an amount P400,000 was
collected and recorded on December 31, 2023.
2) What total amount should be reported as cash on December 31, 2023?

3) What total amount should be reported as cash equivalents on December 31, 2023?

4) Johhny Joestar Company provided the following information on December 31, 2020:
Petty cash fund 50,000
Current account – Speed Wagon Bank 4,000,000
Current account – Araki Bank (250,000)
Money market placement – Morio Bank 1,000,000
Time deposit – F.O.U.R.T.H. Bank 2,000,000
• The petty cash fund included unreplenished December 2020 petty cash expense vouchers for P15,000, and an
employee check for P5,000 dated January 31, 2021.
• A check for P100,000 was drawn against F.I.R.S.T. Bank current account dated and recorded December 29,
2020 but delivered to payee on January 15, 2021.
• The F.O.U.R.T.H Bank time deposit is set aside for land acquisition in early January 2021.

What total amount should be reported as cash and cash equivalents on December 31, 2020?
 PSBA-Manila
5) Polnereff Co. showed a balance on its cash account at Dec. 31, 2022 of P363,000 which determined to consist of
the
following:
Petty Cash Fund* 5,000
Payroll Account – Meow Bank 60,000
Restricted foreign bank account 25,000
Treasury bill, due 3/30/23 (purchased 12/31/22) 70,000
Treasury bill, due 1/31/23 (purchased 5/1/22) 40,000
Demand deposit – Muning Bank (overdraft) (20,000)
Cash in bank – Feline Bank** 90,000
Cash set aside for the acquisition of equipment to be disbursed 4 months after reporting date 30,000
Bond sinking fund 45,000
DAIF check 10,000
Cash Surrender Value 8,000
*Including expense receipts of P1,000, IOUs of P500 and Employee’s post-dated check of P200.
**Net of undelivered check payable to creditors of P30,000.
How much is the amount of Cash and Cash Equivalents at December 31, 2022?

6) Vanilla Company reported a Cash and Cash Equivalent balance of P2,375,000 on December 31, 2022 which
consisted of the following:
Petty cash fund (of which P780 is replenished vouchers for expenses; P150 is IOU notes and
remaining currencies and coins amounting to P3,800). 5,000
Cash in bank, general account A, net of P25,000 bank overdraft in the general payroll account in a different
bank. 625,000
Cash on hand including customers’ postdated checks of P6,500. 25,000
Cash in bank, Administrators payroll account, after checks amounting to P125,000 dated December 31,
2022 but unreleased as of December 31, 2022. 750,000
Savings deposit, earmarked for the acquisition of building which are expected to be disbursed within 6
months from reporting date. 600,000
Money Market instrument purchased on December 25, 2022 maturing on April 25, 2023. 100,000
Cash in bank, General account B, including unrestricted compensating balances of P200,000. 270,000
 PSBA-Manila
How much is the correct amount of Cash and Cash Equivalents to be shown in the Statement of Financial Position at
December 31, 2022?

7) Norman Company has a petty cash fund of P2,500. At the end of the month, petty ash includes the following:
Currency and coins.......................................................................................................................................................................150
Vouchers:
Postage..............................................................................................................................................................................600
Travel..................................................................................................................................................................................750
Donation to charity.......................................................................................................................................................1,000
Total...............................................................................................................................................................................................2,500
What would be the correct journal entry to increase the cash to 10,000

8) On January 1, 2022, Ley Corporation established a petty cash fund of P400. On December 31, 2022, the petty cash fund
was examined and found to have receipts and documents for miscellaneous expenses amounting to P364. In
addition, there was cash amounting to P44. What entry would be required to record the replenishment for the petty

9) If a petty cash fund is established in the amount of P250, and contains P150 in cash and P95 in receipts for
disbursements when it is replenished, the journal entry to record replenishment should include credit (s) to the
following account (s):

Use the following information for the next two (2) questions:
You were hired by Kila Corporation to examine their accounts for the year ended December 31, 2021 and the following are the
items disclosed in your examination of Petty Cash account. A surprise count of cash and cash items was conducted on
January 5, 2022. The company has a petty cash fund of P55,000 which is maintained on an Imprest. The
cash count sheet disclosed the following:
Bills and Coins 28,750
Petty Cash Vouchers:
Date Description Amount
December 27 Transportation expense 9,800
December 31 Postage stamps 2,700
January 2 Repair and sound system 3,200
January 4 Representation expense 1,250
11) What is the correct amount of petty cash fund on December 31, 2021?

12) What is the amount of shortage/overage?

Use the following information for the next two (2) questions:
The Petty Cash Fund of Andrei Company has an imprest balance of P20,000. The following items are found in its drawer on
December 31, 2021:
Currencies and coins 4,700
Vouchers for expenses during the year:
Office supplies 1,500
Postage stamps 500
Transportation 100 2,100
IOU notes of several employees all dated December 2021 2,500
Unused postage stamps 100
Replenishment check drawn by the Company payable to the order of petty cash custodian 1,500
Check received from customers representing sales for the month of December 1,700
Check received from Doug, an officer, dated December 30, 2021 2,000
Envelope containing contributions from employee for filed trip in Taytay Rizal 5,000
13) What is the correct amount of petty cash fund on December 31, 2021?

14) What is the amount of shortage/overage?

15.) The information that follows is available from the general ledger and the bank statement of Bucks Company:
• Cash in bank, October 31, P939,000
• Deposit in transit, October 31, P35,000; outstanding checks, October 31, P68,000
• Credit memo, October P60,000; Debit memo, October P20,000.
• Included in the October bank receipts was a deposit of Bucks Company for P25,000, erroneously recorded by
the bank to Ducks Company’s account.
• Included in the October bank disbursements was check issued by Quacks Company for P10,000, erroneously
recorded by the bank in Bucks Company’s account.
• Included in the book receipts was a deposit for P45,000 which was recorded as P54,000. No correction was
made yet by Bucks Company.
• Included in the book disbursements was a check issued by Bucks Company for P42,000 was recorded as
P24,000.
Correct Cash Balance Oct 31 2019?

Use the following information for the next two (2) questions:
Nome Company has just hired you as an accounting supervisor. You are reviewing Nome’s bank reconciliations
prepared by a junior clerk, and have decided to prepare your own reconciliation first, to compare it to the clerk’s results.
You have collected the following information as of December 31, 2022:
Outstanding checks 22,000
NSF check returned by bank 1,500
Balance per bank statement on December 31 40,100
Check paid to supplier for cleaning services rendered in November 2022, which was incorrectly recorded by the 5,000
company as P5,005, but correctly included on bank statement December 15, 2022 as P5,500
Deposit made December 31, 2022 but not recorded on January bank statement 10,000
Bank service charges 40
18) The unadjusted general ledger balance as of December 31, 2022 would be how much?
19) After completing the bank reconciliation and reviewing the clerk’s bank reconciliation, you have instructed the clerk to
prepare all the journal entries necessary to correct the general ledger. The net effect of the adjustments on 2022 net
income would be how much?

Use the following information for the next two (2) questions:
`

In connection with your audit of Brilliance Corporation for the year ended December 31, 2022, you gathered the following
information:
Current account at Bank of the Philippine Island 6,000,000
Current account at Equitable PCI Bank (300,000)
Payroll account 1,500,000
Foreign bank account – restricted (in USD)** 60,000
Postage stamps 3,000
Employee’s postdated check 12,000
IOU from a key officer 30,000
Credit memo from a vendor for a purchase return 60,000
Traveler’s check 150,000
Customer’s not-sufficient-fund check 45,000
Money orders 90,000
Petty cash fund (P12,000 currency and expense vouchers for P18,000) 30,000
Treasury bills, due 3/31/23 (purchased 12/31/22) 600,000
Treasury bills, due 3/31/23 (purchased 1/1/22) 900,000
Change fund 10,000
Bond sinking fund 1,000,000
* current exchange rate as of December 31, 2022 is at P50 for every USD.
1) What is the total cash and cash equivalent to be reported by the company in its December 31, 2022 balance sheet?
2) How much from the list above should be presented as part of noncurrent assets?

3) Buckler Company had the following account balances on December 31, 2022:
Cash in bank 3,200,000
Cash on hand 250,000
Cash fund set aside for dividend payment in 2023 100,000
Cash fund set aside for acquiring land in 2023 1,700,000
The cash in bank included a P250,000 compensating balance against short-term borrowing and is not legally
restricted to withdrawal. What amount should be reported as cash under current assets on December 2022?
4) Gee Company had the following account balances at December 31, 2022:
Savings and demand deposits 5,000,000
Currency and coins 200,000
Time deposits 500,000
Bond sinking fund cash for bonds payable due June 30, 2023 1,000,000
Cash restricted for additions to plant expected to be disburse in 2023 2,000,000
Preference share redemption fund (redemption date May 31, 2024) 2,500,000
Cash in bank included P1,000,000 compensating balance against short-term borrowing arrangement. The
compensating balance is not legally restricted as to withdrawal by Gee. What amount should be reported as total
cash on December 31, 2022?

5) Black Legion Company reported the following information at the end of the current year:
• Investment securities of P1,000,000. These securities are share investments in entities that are traded in the
Philippine Stock Exchange. As a result, the shares are very actively traded in the market.
• Investment securities of P2,000,000. These securities are government treasury bills. These securities are
government treasury bills. The treasury bills have a 10-year term and purchased December 31 at which time
they had two months to go until they mature.
• Cash of P4,500,000 in form of coin, currency, saving account and checking account.
• Investment securities of P1,500,000. These securities are commercial paper. The term of the papers is nine
months and they were purchased on December 31 at which time they had three months to go until they mature.
How much is the total cash to be reported at the end of the year?

6) Insaritarius Company provide the following data on December 31, 2017:

Petty cash fund 25,000
Cash on hand 500,000
Current account 1,250,000
Cash in sinking fund 1,500,000
Money market placement 1,000,000
Saving deposit – set aside for dividend payable on June 30, 2018 250,000
The petty cash fund included unreplenished petty cash vouchers of P10,000. The cash on hand included a customer
check of P200,000 received on December 15, 2017 but dated January 15, 2018. The sinking fund is restricted for the
payment of bonds payable that is due on July 31, 2019. What amount of cash and cash equivalents should be reported?

7) The cash account in the ledger of Mighty Company had a balance of P105,600 at December 31, 2017. An
examination of the account, however, disclosed the following:
 The sales book was left open up to January 5, 2018, and cash sales totaling P15,000 were considered as sales
in December.
 Checks of P9,300 in payment of liabilities were prepared before December 31, 2017, recorded in the books, but
not mailed or delivered to payees.
 Postdated customer collection checks totaling P7,800 are being held by the cashier as part of cash. The
company’s experience shows that post-dated checks are eventually realized.
 Customer’s check for P1,500 deposited with but returned by bank, “NSF”, on December 27, 2017. Return was
not recorded in the books.
 The cash account includes P40,000 earmarked for the purchase of a computer which will be delivered next year.

The cash balance to be shown on the balance sheet on December 31, 2017 should be:
11) The bookkeeper of Levi and Joan Company recently prepared the following bank reconciliation on
December 31, 2023:
Balance per bank statement
Add: Deposit in transit 1,500,000
Checkbook and other bank charge 50,000
Error made by Levi and Joan in recording check No. 1005 (issued in December) 150,000
Customer check marked DAIF 500,000
Total
Deduct: Outstanding checks 1,900,000
Note collected by bank (includes P200,000 interest) 2,300,000
Balance per book
Levi and Joan Co. has P1,000,000 cash on hand on December 31, 2023. The amount to be reported
as cash on the balance sheet as of December 31, 2023 should be?

12) The cash account shows a balance of P38,000 before reconciliation. The bank statement does not
include a deposit of P2,300 made on the last day of the month. The bank statement shows a
collection by the bank of P940 and a customer’s check for P220 was returned because it was NSF. A
customer’s check for P450 was recorded on the
books as P540, and a check written for P79 was recorded as P97. The correct balance in the cash
account was?
Use the following information for the next two (2) questions:
John Cena Company provided the following data for the purposes of reconciling the cash balance per book:
Balancer per book 220,000
Outstanding checks 50,000
Deposit in transit 90,000
December NSF checks 30,000
Erroneous credit to John Cena’s account, representing proceeds of loan granted to John Bo Company 60,000
Proceeds of note collected by bank for John Cena, net of service charge of P4,000 150,000
Erroneous bank charge 3,000
A check of P5,000 in payment of account was recorded by the company as 50,000
13) How much is the correct cash balance?

14) How much is the cash in bank balance as shown in the bank statement?

Use the following information for the next two (2) questions:
The following data are gathered from the cash books and bank statement received from Davao Bank by Carduh Company:
a. The cash in bank ledger account shows a debit balance of P290,438.50 as of May 31.

b. The bank statement shows a credit balance of P318,560 as of May 31.

c. An examination of the checks encashed by the bank shows that the following checks are not presented for
payment: No. 187, P3,608; No. 189, P15,499; No. 191, P4,400;
No. 192, P1,545.50, No. 193, P23,001

d. A certified check for P24,750 payable to creditor, was encashed by the bank during May.

e. The bank statement shows a deduction of P10,802 for check No. 184. The check was actually made out at P10,208.

f. A check deposited on May 27 for P34,100 was returned by the bank on May 28 marked Refer to Maker.

g. A non-interest bearing note for P44,000 was collected by the bank for the account Carduh Company. Collection fee
deducted by the bank is P330.
h. A deposit for P20,900 was recorded in the books twice.

i. Check No. 179 for P26,400 was erroneously recorded in the books as P46,200.

j. Interest on an outstanding loan payable, deducted by the bank on May 31, P1,320.

k. Collections on May 31 to be deposited on June 1, P26,488.

15) Carduh Company’s adjusted cash balance at May 31, 2021 is:

16) The recorded cash of Carduh Company at May 31 is:

Use the following information for the next two (2) questions:
Following data pertaining to the cash transactions and bank account of Abiso Company for May 2021 are available to you:
Cash balance, per accounting records, May 31, 2021 51,582
Cash balance, per bank statement, May 31, 2021 95,874
Bank service charge for May 327
Debit memo for the cost of printed checks delivered by the bank; the charge has not been recorded in the
accounting records 375
Outstanding checks, May 31, 2021 20,184
Deposit of May 30 not recorded by bank until June 1 14,610
Proceeds of bank loan on May 30, not recorded in the accounting records, net of interest of P900 17,100
Proceeds from a customer’s promissory note; principal amount P24,000, collected by the bank, taken up in the
books with interest 24,300
Check No. 1086 issued to a supplier entered in the accounting records as P6,300 but deducted in the bank
statement at an erroneous amount of 3,600
Stolen check lacking an authorized signature, deducted from Abiso’s account by the bank in error 2,400
Customer’s checks returned by the bank marked NSF, indicating that the customer’s balance was not
adequate to cover the checks; no entry has been made in the accounting records to record the returned
check 2,280
17) The adjusted cash in bank balance of Abiso Company at May 31, 2021 is:
18) The cash in bank balance of Abiso Company at May 31, 2021 is:

Use the following information for the next two (2) questions:
At October 31, 2022, total debits and total credits to cash in bank account of Goldberg Company are P62,500 and
P38,500, respectively.
The bank statement for the month of October indicates that only P57,500 in deposits were received during the month
and checks clearing the bank were P30,500.
In addition to the deposits acknowledged by the bank during the month of October and the checks that cleared the bank
during October, the bank statement for the same period shows credit memo for note collected of P1,500 and debit
memo for service charge of P1,000.
The September 30, 2022 bank reconciliation showed deposits in transit of P12,500; outstanding check is unknown;
credit memo for note collected of P2,500; and debit memo for service charge of P1,500. Outstanding checks at October
31, 2022 were P22,500.
19) The deposit in transit as of October 31, 2022:

20) The outstanding checks as of September 30, 2022:

Use the following information for the next two (2) questions:
Bears Entity revealed the bank statement balance on December 31 at P8,500,000.
• A deposit of P950,000 placed in the bank’s night depository on December 29 does not appear on the bank
statement. Checks outstanding on December 31 amount to P400,000, including P100,000 certified check.
• The bank statement showed that on December 25 the bank collected a note for the entity and credited the proceeds
of P935,000 to the entity’s account which included P35,000 interest. The entity discovered that a check written in
December for P200,000 in payment of an account had been recorded as P20,000.
• Included with the December 31 bank statement was an NSF check for P250,000 that the entity had received from a
customer on December 20. The bank statement showed a P15,000 service charge for December.
21) What is the adjusted cash in bank on December 31?

22) What is the cash in bank per ledger on December 31?

23) Czech Company provided the following information on December 31, 2023:
Cash balance per bank statement 4,000,000
Checks outstanding (including certified check of P100,000) 500,000
Customer note collected by the bank for Czech 150,000
NSF checks of customers returned by bank 200,000
Bank service charge shown in December bank statement 20,000
Error made by Czech in recording a check that cleared the bank in December (check was drawn in
December for P100,000 but recorded at P10,000) 90,000
Deposit in transit 1,300,000
What is the cash balance per ledger on December 31, 2023?

24) The following information were revealed in trying to reconcile the bank statement balance as of June 30 with the
client’s records as of the same date:
• Total credits per June bank statement were P3,100,000.
• Among the bank credits in May was a customer’s note collected by the bank for the account of the company
which the company recognized in June. Proceeds was P303,000.
• Client books for June showed receipts of P4,200,000.
• Deposit in transit on May 31 were P150,000.
• The bank credited the client’s account in June for P500,000 representing loan approved and granted by the
bank. Your client has not recorded this yet.
• A deposit of P43,000 was recorded by your client as P34,000 in June. The bank recorded the deposit at its
correct amount.
How much is deposit in transit at June 30?

25) Wingbow Corporation records showed the following:

Outstanding checks, November 30 900,000
Customer’s NSF check recorded in December but returned in November 60,000
Service charges made by the bank in November and recorded in December 24,000
Total credits to the cash account in all journals during December 2,304,000
Checks and charges returned by bank in December including a December service charge of P30,000 1,950,000
and NSF check of P120,000
How much is the outstanding checks as of December 31?

Use the Information to Answer the Following:

Sustainer Company had the following bank reconciliation at March 31, 2022:
Balancer per bank statement, March 31 465,000
Add: Deposit in transit 100,000
Erroneous bank charge (corrected in April) 20,000
Debit memo 10,000 130,000
Total 595,000
Less: Outstanding checks 125,000
Credit memo 60,000 185,000
Balancer per book, March 31 410,000
All reconciliation items at March 31, 2022 cleared through the bank in April. Outstanding checks at April 30, 2022,
totaled P75,000; deposits in transit amounted to P150,000; credit memo for April – P80,000; debit memo for April
P15,000, bank receipts for April – P600,000 and a bank disbursement for April P500,000.
26) What is the amount of cash receipts per book in April?
27) What is the amount of cash disbursement per book in April?